Q2 Automobile Summary
Overall (Moderate)
Market conditions remained modestly favorable overall.
Pricing (Flat)
Expiring pricing was achieved in most cases.
Capacity (Constrained) While capacity remained sufficient for private cars and small fleets, large fleets and out-of-appetite risks experienced constrained capacity.
Underwriting (Prudent) Driven by inflation and growing claims frequency, insurers remained cautious and conservative in Q2.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Expiring coverages were achieved in most cases.
A Look Ahead (Moderate) Inflationary impacts, combined with uncertainty related to the geopolitical events in Eastern Europe, may lead to higher pricing and increased conservatism.
Q2 Cyber Summary
Overall (Challenging)
Market conditions remained challenging in Q2, with rigorous underwriting, further capacity contraction and increased pricing.
Pricing (>+30%)
Significant price increases continued to be experienced across all client segments.
Capacity (Constrained) Capacity was reduced across all segments. Appetite continued to vary widely by insurer and some industry segments remained difficult to insure.
Underwriting (Rigorous) Underwriting remained stringent in Q2. Underwriters were reluctant to provide quotes without complete underwriting information and insurers declined certain risks where risk control was not deemed sufficient.
Limits (Decreased) Limits continued to contract in Q2.
Deductibles (Increased) Upward pressure on deductibles continued. In many cases, they have reached a level where coverage is viewed as balance sheet protection, applicable to major losses only.
Coverages (More Restrictive) Restrictions remained prevalent for ransomware, known vulnerabilities and end-of-life products.
A Look Ahead (Challenging) Current market conditions are expected to continue.
Q2 Property Summary
Overall (Moderate)
The recent past focus on valuations has increased insurer confidence, leading to more stable market conditions.
Pricing (+1-10%)
While pricing was generally flat for less challenged occupancies, more challenging risks experienced increases. Pricing pressure remained modest with the key exception of food/feed risks, which experienced more significant rate increases.
Capacity (Ample) The new capacity that entered the market in Q1 continued to have a positive impact. Capacity was sufficient in most cases; however, distressed risks experienced constraints.
Underwriting (Prudent) Insurers remained cautious in Q2 and there was a continued focus on detailed risk information.
Limits (Flat) Expiring limits were achieved in most cases, though National Catastrophe limits remained under pressure.
Deductibles (Flat) Expiring deductibles were achieved in most cases; any changes were generally initiated by insureds seeking to reduce premium costs.
Coverages (Stable) Expiring coverages were achieved in most cases with the key exception of new exclusions related to the geopolitical events in Eastern Europe.
A Look Ahead (Moderate) Market conditions are expected to remain stable. Insurers will continue to carefully watch the geopolitical events in Eastern Europe and the ESG landscape for potential risk impacts.
Q2 Casualty/Liability Summary
Overall (Moderate)
Market conditions improved slightly in Q2, although challenges remain in poorly-performing industries such as healthcare, energy, chemicals and food/feed.
Pricing (+1-10%)
Price increases continued, driven by class of business and exposure type (especially the presence of US exposures).
Capacity (Ample) Capacity increased as new insurers entered the market, even despite their somewhat focused appetite and offerings.
Underwriting (Prudent) Underwriting remained cautious and conservative.
Limits (Decreased) Limit and sub-limit decreases were prevalent across poorly-performing coverages and risk types.
Deductibles (Increased) Deductible increases were broadly imposed.
Coverages (More Restrictive) Coverage restrictions related to COVID-19, pure Financial loses, Silent Cyber, and the geopolitical events in Eastern Europe were common.
A Look Ahead (Moderate) Market conditions are expected to remain moderate with additional underwriting scrutiny related to ESG.
Q2 Directors and Officers Summary
Overall (Moderate)
The moderation that began in Q1 continued into Q2.
Pricing (+1-10%)
Modest price increases continued, the extent of which varied largely by segment and industry.
Capacity (Ample) Capacity remained sufficient for most risks.
Underwriting (Prudent) Underwriting remained cautious in Q2, with continued concern related to the geopolitical events in Eastern Europe.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Coverages remained stable in Q2 with any restrictions imposed on a case-by-case basis.
A Look Ahead (Moderate) With pricing now generally deemed sufficient, appetite may expand in this space, leading to a further stabilization of market conditions and potentially flattening prices.
Q2 Trade Credit Summary
Overall (Moderate)
Market conditions remained moderate following historically favorable claims ratios in 2021; however, underwriters are keeping a watchful eye on the geopolitical events in Eastern Europe and their potential impact on risk.
Pricing (+1-10%)
Expiring pricing was achieved in most cases with the notable exception of poor performing risks.
Capacity (Ample) Capacity was sufficient for existing demand, despite recent reductions.
Underwriting (Flexible) Underwriting remained pragmatic but was accommodating when needed.
Limits (Increased) Significant increases were requested and secured in Q2, driven by inflationary pressures.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Broader) Broader terms could generally be achieved on a case-by-case basis.
A Look Ahead (Challenging) Insurers will maintain a watchful eye on insolvency rates and economic trends.
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